#Composites

2017-08-17

SGL Group posts good first half-year results

SGL Group delivered good results for the first half of 2017. Sales and profitability have improved substantially. Sales from continuing operations amounted to 435.3 (prior year period: 379.4) million euros, up by nearly 15 percent year-on-year. Market segments energy, digitization and industrial applications were the main growth drivers. Both business units Composites – Fibers & Materials (CFM) and Graphite Materials & Systems (GMS) contributed double-digit growth rates.

Group sales from continuing operations increased by almost 15 percent to 435.3 million euros
Recurring Group EBIT rises more than proportionately to 22.5 million euros
Graphite Materials & Systems (GMS) clearly improves operating profit year-on-year; operating profit of Composites – Fibers & Materials (CFM) stable, as expected
Sales agreement for cathodes, furnace linings and carbon electrodes (CFL/CE) signed
Closing of the two sales transactions of the former business unit Performance Products (PP) expected this year
Dr. Jürgen Köhler, CEO of SGL Group: “After the sale of our former business unit PP, we will now focus fully on our growth businesses CFM and GMS”

Recurring EBIT increased significantly to 22.5 (prior year period: 9.6) million euros. Return on capital employed (ROCE) based on recurring EBITDA improved to 9.8 (prior year period: 8.3) percent.

On August 8, 2017, SGL Group signed an agreement to sell its cathodes, furnace linings and carbon electrodes (CFL/CE) business to funds advised by Triton. The two parties agreed on an enterprise value of 250 million euros. After deducting standard debt-like items, mainly pension provisions, as well as other customary adjustments, the transaction will result in cash proceeds of more than 230 million euros. The closing for this sale as well as for the sale of the graphite electrode business to Showa Denko are expected this year. With these two transactions, the former business unit Performance Products (PP) has been sold at a total enterprise value of 600 million euros and approx. 130 million euros above its book value on June 30, 2016.

“In the second quarter we continued with the performance seen at the beginning of the year,” says Dr. Jürgen Köhler, CEO of SGL Group. “This shows that our focus on the mega- trends mobility, energy and digitization was the right decision. Our strategic realignment is now close to the finishing line. The sale of our former Performance Products business unit means that we can now concentrate on our growth businesses Composites – Fibers & Materials and Graphite Materials & Systems.”

Group EBIT after non-recurring charges also improved substantially in the first half of the year, from 9.6 million to 15.7 million euros, despite an increase in non-recurring charges. The net financing result, at 26.2 (prior year period: 25.9) million euros, remained almost unchanged.

The SGL Group improved its result from continuing operations before taxes from minus 16.3 million to minus 10.5 million euros. Including discontinued activities, the Group’s consolidated net result after taxes in the first half of 2017 amounted to minus 3.6 (prior year period: minus 73.2) million euros.

Composites – Fibers & Materials (CFM): sales significantly higher; earnings at previous year’s level due to ramp up of the Lightweight and Application Center

Sales in the first half of 2017 in the reporting segment Composites – Fibers & Materials increased by 12.6 percent, to 176.2 (prior year period: 156.5) million euros, primarily due to higher sales in the market segments industrial applications, automotive, and textile fibers. In the market segment industrial applications, carbon fiber sales for injection molding applications developed particularly well, while in textile fibers, the high oil price compared to the prior year period had a positive impact on selling prices. The market segments aerospace and wind energy recorded slightly lower sales.

As expected, recurring EBIT, at 12.4 million euros in the first half of 2017, remained at a similar level as in the comparable prior year period (12.2 million euros). The ramp up of the Lightweight and Application Center (LAC), which is designated to develop future business with the automotive and aerospace industries, offset operational improvements in nearly all market segments, as anticipated. The strongest earnings improvement was recorded in the market segment industrial applications, resulting from the good capacity utilization in the carbon fiber plant in Scotland. Higher sales led to a slight decrease in the EBIT margin to 7.0 percent (prior year period: 7.8 percent).

Return on capital employed (ROCE) based on recurring EBITDA increased from 9.9 percent to 10.8 percent. EBIT after non-recurring charges declined to 6.4 (prior year period: 12.2) million euros. The decrease is solely attributable to the disposal of the production site in Evanston, leading to a negative earnings effect from attributable cumulative currency translation differences amounting to approx. 6 million euros (positive effect of 12.8 million euros from the sale of Evanston was already recorded in the fiscal year 2016).

SGL Carbon decides to restructure its Carbon Fibers business unit

The Board of Management of SGL Carbon SE today decided, with the approval of the Supervisory Board, to restructure the loss-making Carbon Fibers business unit. SGL Carbon will significantly reduce the business activities of Carbon Fibers and focus on a profitable core. Individual solutions are being developed for all Carbon Fibers sites, including the closure of unprofitable sites.

SGL Carbon evaluates strategic options for the carbon fibers and appoints Dr. Denis Hinz as new head of the business unit

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached promptly with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step.

Two new logistics halls at the SGL sites in Innkreis, Austria

On July 21, 2023, a 500 m² logistics hall was inaugurated at SGL Carbon's Austrian site in Ort im Innkreis, including an adjoining hall of approximately 150 m² for the storage of tools. Prior to this, a similarly sized logistics hall had already been completed at the Ried im Innkreis site in the spring of last year.

SGL Carbon with solid business performance

Despite the increasingly difficult economic environment, SGL Carbon was able to increase sales in H1 2023 from €549.8 million in the previous year to €560.5 million. Adjusted EBITDA (EBITDApre) remained almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Graphite Solutions business unit and the better-than-expected sales and earnings development of Process Technology and Composite Solutions compensated the drop in demand in Carbon Fibers.

MEL Composites and Carrocerías Ayats collaborate on lightweight composite window frames

MEL Composites is proud to announce its ongoing collaboration with Spanish bus and coach manufacturer Carrocerías Ayats, showcasing the benefits of advanced composite technologies and scalable manufacturing processes originally developed for the sporting goods sector. The joint development of lightweight composite window frame covers demonstrates how MEL’s process innovation can be successfully transferred to the transportation industry to meet new regulatory and performance goals.

Technical textiles for more and new business

KARL MAYER's composite machines and warp knitting machines with weft insertion produce technical textiles offering an impressive variety of properties and textures. The range of tasks these textiles can perform is as broad as the spectrum of their possible fields of application. Both newcomers with the right textile solution and already established players can trust their business will flourish, as demonstrated by the examples from KARL MAYER's Technical Textiles division at ITMA ASIA + CITME 2025. The exhibition at stand A 301 in Hall 5 of the Singapore EXPO focuses on two areas: filtration and construction.

KARL MAYER puts textiles centre stage

For KARL MAYER, textiles are much more than just materials – they express function, emotion and progress. And they are at the heart of its customers' activities. KARL MAYER is now focusing more than ever on its customers' needs and plans and therefore on the textiles made on its machines: WARP KNITS. At the upcoming ITMA ASIA + CITME, the company will demonstrate how textile solutions are providing new impetus in the categories of Fashion & Clothing and Technical Textiles.

Rieter reports stable order backlog and strategic progress – outlook for 2025 adjusted

In its Investor Update 2025, Rieter announced an order intake of CHF 203.9 million in the third quarter and CHF 559.3 million after nine months, reflecting a continued cautious investment climate in the textile machinery sector. Sales totaled CHF 121.5 million in the third quarter and CHF 457.7 million for the first nine months of the year, while the order backlog stood at around CHF 590 million as of September 30, 2025.